When buying or selling property, understanding the different types of Michigan deeds is crucial. A deed is the legal document that transfers property ownership, and choosing the right one ensures a smooth real estate transaction. If you need expert guidance, a Livonia Real Estate Attorney can help you navigate the process effectively.
What are the different types of deeds for typical real estate transactions in Michigan? In brief, they are:
Warranty Deeds
A warranty deed offers the highest level of protection for buyers in Michigan real estate transactions. It guarantees that the seller has clear title to the property and the legal authority to transfer ownership. Additionally, it assures that there are no undisclosed encumbrances, such as liens, and obligates the seller to defend against any future title disputes.
Quitclaim Deeds (Not “Quick Claim Deed”!)
A quitclaim deed transfers whatever interest the seller has in the property without any warranties. This type of deed is often used between family members, in divorce settlements, or to correct title issues. Since it offers no assurances regarding title validity, it carries a higher risk for buyers.
Covenant Deeds (AKA Special Warranty Deeds)
A covenant deed, also known as a special warranty deed, provides limited protection. It guarantees that the seller has not encumbered the property during their ownership but does not cover previous owners’ actions.
Lady Bird Deeds (AKA Enhanced Life Estate Deed)
A Lady Bird Deed allows property owners to retain control during their lifetime while designating a beneficiary to inherit the property upon their passing, avoiding probate. This deed is popular in estate planning.
Recording Deeds in Michigan
It is important to understand that simply drafting, signing, and delivering a deed to buyer or other grantee does not provide any public evidence of that sale or transfer. The deed must be recorded with the Register of Deeds in Wayne County, Oakland County, Macomb County, or other Michigan county in which the property is located.
The recording of the deed at the county level provides public notice of the ownership of the property. Without that deed’s recording, the public—and the county tax assessor—will presume that the owner of the property is the last person appearing on the title record.
While Michigan law does provide a process for evidencing ownership of a parcel of land when a deed is not recorded or is lost, it is far better to ensure that the deed is recorded and property ownership affidavit properly filed after land is sold or transferred.
Contact a Livonia Michigan Real Estate Attorney
If you’re involved in a Michigan real estate transaction, consulting with a knowledgeable Livonia Real Estate Attorney ensures your deed selection aligns with your needs and legal requirements.
To discuss your deed-related service, please feel free to click the button below to schedule your initial consultation.